9911796707
TMI Blog2024 (12) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of sec.54F of the Act, new residential house need not be purchased by the assessee in his own name. Since the assessee has purchased the residential property in his wife s name, deduction need to be allowed and for such a proposition. As decided in the case of CIT v. Kamla Wahal [ 2017 (8) TMI 285 - PUNJAB AND HARYANA HIGH COURT] the assessee in the present case has not purchased the new house in the name of a stranger or somebody who is unconnected with him. He has purchased it only in the name of his wife. There is also no dispute that the entire investment has come out of the sale proceeds and that there was no contribution from the assessee's wife. AO is directed to give deduction claimed u/s. 54F of the Act. Decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med a deduction of Rs. 44,27,994/- being the capital gain investment into residential property purchased by his wife. Therefore, the AO issued show cause notice to the assessee as to why he should not treat the deduction claimed u/s. 54F to the tune of Rs. 44,27,984/- as Long Term Capital Gain (LTCG) of the assessee for AY 2012-13. The assessee in order to justify the claim of deduction u/s. 54F of the Act brought to his notice that a residential house was purchased by him on 18.01.2012 in the name of his wife and that this house is the only residential property of theirs. In other words, it was asserted that the assessee didn t have any other residential property other than the property it purchased in his wife s name. However, the AO note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vegetable Products reported in 88 ITR 192 wherein the Hon ble Supreme Court has held that in case of doubt or dispute it is well settled that construction of provision of law which favors assessee be adopted, rather that of Revenue. Thus, if two reasonable views are possible on an issue, then one in favour of the assessee must be adopted. Therefore, according to the Ld.AR, on the issue when favourable view is there as held by the jurisdictional High Court in the case of CIT v. Natarajan (supra) and which is binding, the Ld.CIT(A) erred in following the order of the non-jurisdictional High Court to disallow the claim of the assessee. 7. Per contra, the Ld.DR supporting the action of the Ld.CIT(A) submitted that deduction u/s. 54F of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n t have any other residential property. On appeal, the Ld.CIT(A) confirmed the action of the AO by citing the decision of non-jurisdictional High Court as noted supra. Before us, the Ld.AR brought to our notice that the assessee has sold his immovable property for a consideration of Rs. 50,40,000/- in cash (copy of sale documents, statement of bank accounts of the assessee ) and out of ibid sale proceeds an amount of Rs. 19,75,000/- was deposited in the assessee s bank account and Rs. 36 lakhs cash was deposited in the bank account of the assessee s wife in her UCO bank in the relevant Assessment Year; and that assessee has purchased a residential property in his wife s name, and claimed deduction u/s. 54F of the Act to the tune of Rs. 44, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se need not be purchased by the assessee in his own name. Since the assessee has purchased the residential property in his wife s name, deduction need to be allowed and for such a proposition, we rely on the following decisions: Forum Name of the case Citation High Court of Delhi Commissioner of Income-tax-XII v. Kamal Wahal [2013] 30 taxmann.com 34 (Delhi) High Court of Delhi Commissioner of Income-tax v. Ravinder Kumar Arora [2011] 15 taxmann.com (Delhi) High Court of Punjab and Haryana Commissioner of Income-tax v. Gurnam Singh 327 ITR 278 10. The Hon ble Delhi high Court in the case of CIT v. Kamla Wahal reported in [2013] 30 taxmann.com 34 (Delhi) has observed as under: 9. It thus appears to us that the predominant judicial view, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
